Australian Tech Company IoT Group Inks AU$190 Million Crypto Mining Deal with Local Bitfury Reseller

The Sydney-based blockchain firm has struck a deal with Bitfury’s Australian reseller to set up a mining operation in Hunter Valley, Australia but with one condition: the company’s previously reported plan to re-open a decommissioned coal power plant has to push through.

The Royalti Blockchain Group will be providing the Bitfury mining hardware for the operations while the IoT group will be providing the facility—the Blockchain Applications Complex (BAC), a facility that the company is yet to develop.

The AU$190 million deal involves cheaper power rates. The deal terms include 20 megawatts of power, for a minimum period of five years at $0.11/KWh. This is pretty low compared to the average retail rate of $0.30/KWh.

Of course, this will only be possible if the IoT Group’s partnership with Hunter Energy is successful in that it allows for the re-opening of the now-decommissioned Redbank Coal Power Plant. Getting the coal plant up and running would mean drawing energy at wholesale prices.

IoT Blockchain let out this announcement:

“Investors should note that the Terms sheet is subject to and conditional upon the satisfaction or waiver of certain conditions precedent, including the completion by Hunter Energy of its proposed acquisition of all right, title and interest in the Redbank Power Station to the absolute satisfaction of IoT…If Hunter does not complete its acquisition… the transaction…will not proceed.”

The terms for the Power Purchase Agreement will occur sometime before October 1, 2018